Insurance companies are now denying or limiting coverage to any clients who were exposed to FTX, after the cryptocurrency exchange collapsed last month, leaving creditors with more than $3 billion in losses.
This has left many digital currency traders and exchanges uninsured from any losses due to hacks, theft, or lawsuits, as insurers propose new policy exclusions for any claims related to the FTX scandal to protect themselves from further fallout, Reuters reported.
Last week, FTX’s founder and former CEO, Sam Bankman-Fried, was arrested at his home in the Bahamas after being charged with eight criminal allegations by U.S. federal prosecutors….